Kathy Kraninger reviews rulemaking process, enforcement actions and consumer programs. The bureau also released fall rulemaking agenda on Friday stating it expects to release part two of the debt collection rule in December 2020.
12/11/2020 16:00
Two years into her five-year term as director of the Consumer Financial Protection Bureau, Kathy Kraninger recapped the bureau’s work under her leadership, which for the accounts receivable management (ARM) industry will still bring one more significant rulemaking on debt collection before the end of the year.
“In these challenging times, I’m proud of the work that the bureau has undertaken to protect consumers during the pandemic,” Kraninger said in a news release. “We have a dedicated workforce that has been focused on carrying out our mission and adapting to the current environment. For example, we have altered the way that we conduct examinations to protect our workforce as they work to protect consumers in the marketplace. We will continue to use all of our tools to prevent consumer harm through education, supervision of financial markets, development of regulation, and enforcement of the law against bad actors.”
2021 at the bureau could look different if President-elect Joe Biden appoints a new director. If the Senate retains its Republican majority after the Georgia runoff elections, the appointment could take some time and questions remain about the process.
Kraninger’s report focuses on her leadership focus on informing and protecting consumers, including efforts during the COVID-19 pandemic, public enforcement actions, access to financial products for consumers, rulemaking, compliance, research and innovation, among other topics.
Turning to rulmaking, as ACA International and the ARM industry await the release of part two of the bureau’s debt collection rule likely to focus on consumer disclosures and validation notices, Kraninger reviews several rules issued this year.
The most significant for ACA to date is the first part of the debt collection rule to clarify and update the Fair Debt Collection Practices Act and apply it to newer communications such as text messages and email while considering consumer protections.
Kraninger also notes the payday lending rule and two mortgage rules, issued Dec. 10, leaving part two of the debt collection rule as one pending matter on the bureau’s rulemaking agenda.
Shortly after Kraninger’s report was released, the bureau also provided an updated fall rulemaking agenda stating it, “expects to issue a final rule in December 2020 addressing, among other things, disclosures related to the validation notice and time-barred debt.”
Read more from Kraninger’s reflection on her work at the bureau so far here.
ACA is ready to continue to work with the CFPB no matter who leads it in 2021. We are also ready to help members navigate the debt collection rulemaking.
Members can access recordings and presentations on the rule so far here and learn more about upcoming webinars planned after part two is released here.
Related content from ACA International:
Communicate and Create: Tips to Operationalize the CFPB’s Debt Collection Rule
Member Alert: Share Your Input on Voicemail Requirements in CFPB Debt Collection Rule
Breaking Down Email and Text Message Communications in the FDCPA